Which type of coverage could assist Gail in rebuilding her restaurant at replacement cost despite her policy's 80% requirement?

In situations where a property, such as Gail's restaurant, requires rebuilding at the current costs despite the limitations of an insurance policy, Increased Construction Costs coverage is particularly relevant. This type of coverage is designed to help property owners cover the additional expenses associated with higher rebuilding costs that may arise due to inflation or changes in construction codes after a loss.

Even if the policy includes an 80% coinurance clause, which typically mandates that the policyholder insure the property for at least 80% of its replacement cost to receive full payment after a loss, Increased Construction Costs coverage effectively expands the financial support available to rebuild at today's market rates.

Insurance products like Extended Replacement Cost coverage, Building Ordinance coverage, and Replacement Cost Valuation serve different roles. Extended Replacement Cost may provide some additional coverage above the insured amount, but it often does not entirely address cost increases. Building Ordinance coverage helps with costs related to complying with current building laws or ordinances, which can be important but isn't focused solely on the overall increased costs of rebuilding. Replacement Cost Valuation pertains to assessing the value of lost items or structures based on replacement cost rather than actual cash value, but it doesn’t inherently offer additional funds for cost overruns due to increased construction pricing.

Thus